For 30 years, Finance Fund has connected local for-profit business owners and nonprofit organizations with public and private funding to help spark community development and create jobs in distressed communities statewide. Find out more about Finance Fund's work, projects and partners and how we can help you achieve your goals and benefit your community.

Finance Fund provides funding for projects that fulfill community needs, create jobs and improve the quality of life in economically distressed communities. We connect small business owners, developers and community development organizations with public and private sources of funding. Our funding programs include urban and rural lending, grants and gap financing.

Our work is guided by community-based organizations and leaders who know best what is needed in their own backyards.

Since 1987, Finance Fund has directly benefited the lives of Ohioans by funding small business expansion and job creation. Our focus areas include healthy food projects, education and training, community facilities and health care.

Finance Fund works with state and federal policy makers on issues that impact economic development in Ohio. Whether it's to educate about an issue or provide information, our ultimate aim is to help leaders better serve their citizens through new and continuing support for programs that improve the quality of life for many people.

Finance Fund brings resources and projects together to improve the economic vitality of distressed communities. Learn more about our work, how to apply for our programs and how to involve our experts in your educational seminars or news stories.

I always look forward to celebrating Thanksgiving with friends and family, then launching into the hustle and bustle of holiday shopping. We all know Black Friday and Cyber Monday, but fewer people are aware of #GivingTuesday, November 29th. Launched in 2012, this international movement is fueled by social media and generates philanthropic support for a wide range of causes. Leading technology companies including Mashable, Skype, Cisco, Microsoft, and Sony are behind its founding and continue to shape and strengthen the online movement.

Finance Fund Capital Corporation (FCAP) will participate in #GivingTuesday again this year and is focusing our request around Healthy Food for Ohio (HFFO), a public-private partnership which we launched in March. HFFO has been successful in bringing flexible funding to healthy food retailers opening or expanding operations in underserved communities. To date, the program has leveraged $2 million in state seed capital to $12 million and funded 5 projects in urban and rural communities statewide.

The demand for HFFO funding, however, far exceeds available resources. Nearly 40 healthy food retail projects have applied for HFFO’s flexible funding to date. To help meet the demand, FCAP is seeking additional support for the HFFO program on #GivingTuesday.

Thanks to HFFO funding, grocery retail is now providing fresh fruits and vegetables, meat and dairy in areas formerly designated as USDA food deserts. We know that access to healthy, affordable food can reduce chronic disease and obesity that often stems from a diet high in fats, starches and sugars. HFFO-funded projects range from food hubs to supermarkets and mobile markets and reflect the diverse range of needs in the urban and rural communities they serve.

Here are a few HFFO-funded project examples:

Prather’s IGA . This family owned and operated supermarket provides USDA Grade A meats, as well as produce, dairy, and a full range of grocery items to the rural West Union community. With HFFO funding, Prather’s is updating their produce department, cold and freezer cases to expand their healthy food selection.

Simon’s Supermarket . Located in USDA-designated urban food desert on Euclid Avenue in Cleveland, Simon’s brings jobs and much-needed fresh food to an impoverished area. A recent preview event at the construction site attracted about 90 area residents who shared their ideas for needed grocery items, and completed employment applications.

Hattie Larlham . Thanks in part to funding from the HFFO program, a 4,400 sq. ft. fresh food “corner market” is growing out of the Hattie Larlham food processing hub to provide Akron residents with produce, and create new job training opportunities for people with disabilities.

Thank you for being a friend to FCAP and for supporting our efforts to improve the health of children and families through healthy food access. Please give generously on #GivingTuesday or use this link to make your contribution today.

As a Finance Fund employee, I was thrilled to attend the recent Kroger Northland Village grand opening on Morse Road in Columbus. As a resident of the community served by the new full-service store, I can report that it has greatly exceeded my neighborhood’s expectations. Not only does the store cater to the diversity of the community, it also created more than 200 jobs for area residents. Walking through it, I felt like a child in the world’s largest toy store. The place is huge – 102,188 sq. ft. – and offers so much more than I could have ever imagined.

I am amazed at the effort that Kroger put forth to actually research the multi-ethnic Northland Village community and provide such a wonderful place to shop. Clearly, the store was designed to cater to the neighborhood’s different nationalities and businesses including: Somali, African American, Asian, Nepali, South American/Latino, American and Italian.

Here are just a few of the highlights:

At the entrance and upstairs, beautiful murals painted by local artists capture the diversity of the community

On offer are spices, fruits and vegetables and foods you won’t find in any other Kroger that are native to the different nationalities

Convenience options include a salad and olive bar, Starbucks, and made-to-order pizza, pasta, sandwiches and sushi and an in-store food cart serving Nepali, Indian and Tibetan cuisine

There is a section for pets and beauty supplies

They even sell clothing with inspiring phrases and pictures of children of different ethnicities

Numerous seating areas inside and out encourage relaxation and conversation, and a second floor area has televisions

There is even a Little Clinic and large pharmacy with interpreters

Finance Fund saw the need for the store in what was a USDA-designated food desert, and used New Markets Tax Credit financing to attract critical private investment to this project. Finance Fund provided $8,500,000 of federal NMTC allocation and $2,564,103 of Ohio NMTC allocation. In addition, the project received Tax Increment Financing from the City of Columbus for infrastructure. U.S. Bancorp, the investor, provided $1,500,000 of federal NMTC allocation to the project.

If you are in the Northland Village neighborhood, be sure to stop by to see how Finance Fund put New Markets Tax Credit financing to work to enable Kroger to create a truly unique grocery store dedicated to meeting the needs of its local customers. />/>

Energy and optimism filled the room as 90 Euclid community residents gathered in late September to preview the new Simon’s Supermarket and learn more about employment opportunities.

Young families, senior citizens, city and community leaders all expressed support and appreciation for this tremendous community asset and employer. Not only will the store provide high-quality, affordable healthy food options where none existed before, it will also employ up to 60 workers drawn from the economically distressed neighborhood.

Simon’s Supermarket owner Simon Hussain turned to the Healthy Food for Ohio (HFFO) program for funding help to convert the vacant 27,000 sq. ft. property into a full-service supermarket. His experience in developing and managing two other supermarkets in low-income Cleveland neighborhoods enabled him to see the potential of the Euclid site.

The HFFO program, administered by Finance Fund Capital Corporation (FCAP), provided flexible capital for in-store construction and equipment costs. In addition, the City of Euclid provided funding for external renovations to the store and parking lot. The City is supporting the project’s ongoing success by developing community engagement and marketing plans alongside Simon, local residents and the Cuyahoga County Board of Health.

Euclid residents welcome Simon’s Supermarket.

The store is located in a high-density urban area along Euclid Avenue, a major transportation and commercial corridor. About a fourth of area households have income below the poverty line and lack access to a private vehicle. The store location is served by a bus stop and is within walking distance of numerous multi-unit housing complexes, including senior housing directly across the street.

Simon’s Supermarket is expected to officially open for business in early November. It is exactly the type of project that HFFO was created to assist. HFFO funding is critical to helping overcome the financial barriers that would otherwise keep a supermarket from locating in a low-income underserved neighborhood.

U.S. Senator Sherrod Brown today visited the construction site of The Childhood League Center’s new location near downtown Columbus, and highlighted the importance of the New Markets Tax Credit (NMTC) program, which made financing for the project possible. The NMTC program incentivizes private investments into highly distressed, low-income communities.

A long-time supporter of the NMTC program, Senator Brown helped secure a five-year extension in December 2015 and noted that “we eventually need to make it permanent.”

Finance Fund provided federal and state NMTC allocation that attracted private investment from Capital One needed to close the financing gap to bring the project to fruition.

“The New Markets Tax Credit facilitates these sorts of public-private partnerships. This is exactly what we need to encourage economic growth — leveraging private capital to create jobs, invest in communities, and lift up our most vulnerable children,” said Senator Brown. “I look forward to seeing what a difference The Center will continue to make in this community.”

The Childhood League Center provides evidence-based programs, interventions and therapies to about 450 children under age six who have developmental delays or are at-risk of being left behind in school. The new facility adds four new classrooms to serve an additional 100 children at the facility as well as many more students in the larger community. It is expected to open in January 2017 – but for those on The Center’s waiting list and those already enrolled, January can’t come soon enough.

Amid the buzz of saws and grind of power equipment, Senator Brown toured the new facility alongside The Center’s Executive Director Ginger Young and me, flanked by central Ohio media. We saw vaulting ceilings, wide hallways and doors open onto state-of-the art learning and developmental play spaces. Some of the facilities are new from the ground up, and others make adaptive re-use of historic Civil War-era buildings at the Fort Hayes Education Center.

Tour of a classroom under construction.

All classrooms feature large windows and outdoor learning patios designed to spark creativity and curiosity. Other features include an indoor gym, one-of-a-kind outdoor playscape, a nurse’s station, quiet rooms, a children’s library, sensory garden and observation nooks for teachers, parents and therapists. The project has created 72 construction jobs and will retain 49 current staff positions and add 18 new jobs.

We discussed the tremendous immediate and long-range returns on investment made possible by the new facility.

“This building is critical to our success,” Ginger said. “I am grateful to both Finance Fund and Senator Brown for believing in the mission of The Childhood League Center and understanding that investment in this project means more children and families will have access to life-changing interventions. This will affect our future educational systems and workforce, and we look forward to showing you the return on this investment.”

This project is very dear to all of us at Finance Fund and is a great example of what New Markets is all about — providing needed services to highly-distressed communities, creating jobs and incentivizing private investment in hard-to-fund-projects. We thank Senator Brown for his ongoing support of the New Markets Tax Credit program and this highly impactful project.

Finance Fund CEO Emeritus James R. Klein (center) at University of Oxford.

In a series of recent broadcast interviews, Global Business with Mahesh Joshi, Voice of America and I explored the concept of “Inclusive Capitalism” and why it is the real measure of society’s prosperity. Here are a few excerpts from the first interview you may find interesting. The entirety of the conversation is available here.

The genius of capitalism is that it both creates incentives for solving human problems and makes those solutions widely available. And it is solutions to human problems that define prosperity, not money.

Life is drastically better for billions of people today than it was in 1800, because we have life-saving antibiotics, indoor plumbing, motorized transport, access to vast amounts of information, and an enormous number of technical and social innovations that have become available to much (if not yet all) of the world’s population.

Most of us intuitively believe that the more money people have, the more prosperous a society must be. But the idea that prosperity is simply about having money can be disproved with a simple thought experiment complements of Eric Beinhocker and Nick Hanauer[i] in a Harvard Business Review article (2014).

Imagine you had the $38,001 income of a typical American but lived among the Yanomami people, an isolated hunter-gatherer tribe deep in the Brazilian rainforest. You’d easily be the richest of the Yanomami. (They don’t use money, but anthropologists estimate their standard of living at around $90 a year.) But you’d still feel a lot poorer than the average American. Even after you’d fixed up your hut, bought the best baskets in the village, and eaten the finest Yanomami cuisine, all of your riches still wouldn’t get you antibiotics, air conditioning, or a comfy bed. Yet even the poorest Americans typically have access to these important elements of well-being.

This is why prosperity in human societies can’t be properly understood by looking just at monetary measures, such as income or wealth. Prosperity in a society is the accumulation of solutions to human problems. The measure of the wealth of a society is the range of human problems it has solved and how available it has made those solutions to its people.

A reorientation toward seeing businesses as society’s problem solvers rather than simply as vehicles for creating shareholder returns would provide a better description of what businesses actually do. It could help executives better balance the interests of the multiple stakeholders they need to manage. It could also help shift incentives back toward long-term investment—after all, few complex human problems can be solved in one quarter.

Once we understand that the solutions capitalism produces are what creates real prosperity in people’s lives, and that the rate at which we create solutions is true economic growth, then it becomes obvious that entrepreneurs and business leaders bear a major part of both the credit and the responsibility for creating societal prosperity.

Today our culture celebrates money and wealth as the benchmarks of success. Suppose that instead we celebrated innovative solutions to human problems. Imagine being at a party and rather than being asked, “What do you do?”—code for how much money do you make and what status do you have—you were asked, “What problems do you solve?” Both capitalism and our society would be the better for it.[ii]

“Not knowing when the dawn will come I open every door.” ― Emily Dickinson

Dickinson’s quote points out a fairly well known principle that is often forgotten, or at least overlooked. We miss a lot of good things by not attempting to do them. As Chair of the CDFI Coalition Board, I’ve taken this little life lesson to heart and applied it to my limited time in office. My opportunity to connect with local CDFIs, which are the basic element of the CDFI concept, is not something I’m willing to overlook.

My first visits were as a result of the 2016 CDFI Institute, held in March in DC, where there was a presentation of Native CDFIs and their work around the country. The follow-up conversations resulted in invitations from Ted Piccolo, Director of Northwest Native Development Fund in Nespelem, WA, and Tanya Fiddler, Director of the Native CDFI Network based in Rapid City, SD. My visits to Coulee Dam and South Dakota made me feel welcome on arrival and better informed when I left.

Northwest Native Development Fund (NNDF) is a CDFI focused on helping individuals create and build assets, such as housing and small businesses. Their work also involves training, small business assistance, and helping make connections with state and local agencies. NNDF serves the Colville Indian Reservation, Spokane Indian Reservation, and Kalispell Indian Reservation tribal members and descendants, as well as those employed by area tribes. My conversation with staff reinforced my admiration for local people whose diligence, persistence, and passion is the backbone of our industry.

South Dakota is the home of nine reservations, and Tanya Fiddler comes to her role as Executive Director of the Native CDFI Network through the challenges of development in these local communities. Formerly, the Director of Four Bands CDFI in Eagle Butte, SD, Tanya has the understanding and unction to move the needle of public policy, local ambivalence, and cultural reticence.

Both of these CDFIs are doing something that is both basic and profoundly critical, not only in Native communities, but also in any unstable economy, low-income neighborhood, or disadvantaged enclave in the nation—and, indeed, in the world. They are creating systems that allow for the building of wealth and, more specifically, individual wealth. Individual wealth stabilizes local economic systems, because it is transferable to the next generation. This work is local and it is systemic.

For far too long, we have focused almost exclusively on the symptoms of these dysfunctional systems and spent billions upon billions of dollars to alleviate their impact. But as those dollars move away, because of political will or economic volatility, the symptoms return with a vengeance. Expecting that doing away with the symptoms will change the systems that cause them is not wisdom, it is “wishdom”. This phrase was coined by Gardiner Morse in a Harvard Business Review article “Bottom-Up-Economics” (August 2003). Morse talks about the Bottom of the Pyramid and its relevance in the stabilization and strengthening of local economies/communities. It is not good enough to rely on public-sector intervention or investment, because it is almost exclusively pointed at the symptoms. These Native CDFIs, as well as their non-Native counterparts, are the type of model to which Mr. Morse is eluding. There is overwhelming evidence that investment in local communities, and specifically local entrepreneurs and small business, is the most effective approach to the viability of local areas.

The challenge in Native communities is exacerbated by the diversity of the communities. Issues of tribal ownership of land and assets, varying forms of tribal governance, levels of support for basic development efforts, levels of collaboration between native and non-native institutions, and simply doing things differently, makes the work even more challenging. It is my intent to do some follow-up on what is actually happening on the ground in these communities at another time.

“A wise man will make more opportunities than he finds.” ― Francis Bacon,

NOTE: This blog was originally published August 10, 2016 by the CDFI Coalition.

The Society for Human Resource Management (SHRM) annual conference offers an array of valuable information, training, education and networking opportunities to help human resource and business leaders enhance, encourage and remain abreast of best practices and compliance.

Diversity Diversity was a major topic of discussion. “The way forward is less about individual policies and program and more about culture and commitment. It’s about choosing and building inclusion,” according to Kathy Martinez, former Assistant Secretary of Labor Disability Employment Policy, DOL.

The conference provided some excellent recommendations for employers to consider:

An inclusive organization is a welcoming place where everyone is treated with dignity and respect. So work hard at maintaining this type of environment.

Be proactive about acknowledging that people are different and have different talents to bring to the table. Appreciate those differences.

Make sure that policies are a direct reflection and consistent with current federal, state and local discrimination guidelines.

Embrace diversity as diverse groups tend to have better problem-solving skills and have more of a creative ability together.

Diversity educates and exposes numerous ethnic differences that can be beneficial to the organization, so encourage it.

Consider employees who may feel like an outsider and take steps to address this.

Mindset Every organization represents many minds, but what mindset is your culture building? Some suggestions for a successful organization include:

Strive to keep a positive mindset despite challenges. Remember that if you live for people’s acceptance, you will not continue to thrive when you are rejected. And rejection will happen.

Demonstrate a positive mindset and then remember that no one is perfect. If you feel that you are somebody when you are successful, then what are you when you are not? Always believe in yourself and your capabilities.

Appreciate accomplishments, but don’t forget to admire the effort.

Always have a humble mindset. Being humble creates an environment of trust and respect.

Have a growth mindset and not a fixed mindset. Never let a setback or negative talk from someone groom your confidence and intelligence.

Humility may be a virtue, but it’s also a competitive advantage. Research from the University of Washington Foster School of Business shows that humble people are more likely to be high performers in individual and team settings and tend to make more effective leaders. Humility has a direct connection to higher levels of engagement and less turnover.

Finance Fund embraces diversity and a mindset of positivity in all of our endeavors. After all, among our values is the statement that “we believe that people are important”. Our work in underserved communities, and our interactions with each other support that value every day. You can discover more about Finance Fund and Finance Fund Capital Corporation at our website.

Each July, community action professionals gather for the Ohio Association of Community Action Agencies (OACAA) Conference to share best practices and get updates on impactful trends, and the changing roles of government in assisting the poor. Panel discussions, plenary sessions, workshops, and networking events brought focus to a wide range of complex and challenging issues that many Ohio communities are facing.

As someone new to the conference, I was impressed by the depth of commitment demonstrated by many Community Action Agency representatives. Some have been continuously involved in community work for 50 years and about half the attendees had 20 years or more of experience. Through my own grassroots service as a member of the Weinland Park Civic Association, I am keenly aware of how important active local civic organizations are to helping neighborhoods thrive. On a larger scale, the organizations represented at the conference serve a vast variety of missions to meet the wide-ranging needs of their communities – from employment assistance, and health and wellness, to housing, financial literacy, education and early development.

David Bradley, Executive Director of the National Community Action Foundation, addressed the status of the “War on Poverty”. This multi-day session examined how U.S. Presidents and Congress have contributed to anti-poverty legislation and policies over the decades to reinforce the work of the Community Action Program. During multiple conversations, it was clear that Community Action Agencies are confronting new and old societal issues. For example, supporting more low-income housing has always been an initiative, but today, there is even less transitional housing available for the working poor.

I am encouraged to learn that some agencies are starting to take advantage of the new funding model for Head Start which now covers child care for a whole work day. This will allow working families to re-enter the workforce full time sooner.

Also of note, session leaders shared insights into the changing roles and responsibilities of Board governance, and how to cultivate a culture of compliance and high ethical standards. As public scrutiny increases and resources stagnate, it is becoming increasingly difficult for nonprofit agencies to grow. Board leaders can play a significant and helpful role in increasing public awareness of agency successes.

Finance Fund provides predevelopment and economic development grants to help mission-driven Community Action Agencies and Community Development Corporations create long-term private-sector jobs to strengthen their area’s economic base. If you’d like more information, please get in touch with me at oelhagmusa@financefund.org

Nearly two million Ohio residents are struggling to afford enough nutritious food for their households, according to The Food Research & Action Center’s (FRAC) report “How Hungry is America?” Despite an improving economy and employment picture, many Ohioans are living on the margins including low-wage workers, seniors, veterans, people with illness or disabilities, and families with children. Ohio continues to rank among the 20 worst states for food hardship according to the report.

Overall, the national average of people who say they didn’t have enough money to buy food declined to 16% in 2015. By comparison, Ohio declined from 18.1% in 2014 to 17% in 2015 – but still reports a higher percentage of food hardship than the rest of the country. Ohio cities, in particular, show high food hardships rates. The Youngstown, Warren and Boardman region had a 22.3% food insecurity rate in 2015 while Dayton’s was at 21.7%. This puts both areas of the state in FRAC’s top 20 list of worst food hardship by metropolitan area. In addition, Cincinnati, Toledo, Cleveland-Elyria, Columbus and Akron all had food hardships rates higher than the national average. The report is based on findings from a Gallup-Healthways Well-Being Index project that surveyed every state throughout 2014.

Finance Fund Capital Corporation (FCAP) is working hard to fund projects that provide low-income households with local access to affordable healthy foods. A great example is the Epicurean Mercantile Company (EMC) in Cincinnati’s developing Over-the-Rhine area. This new urban grocery and demonstration kitchen is focused on providing low-income households with quality affordable fresh foods, as well as information on how to prepare them, and how to shop to get the most from their federal and state food nutrition benefit programs.

FCAP provided EMC with a $236,000 small business loan to get started. A diet of fresh affordable foods is known to help combat obesity, diabetes and other health issues often found in marginalized neighborhoods where fast food or processed foods are most prevalent.

Through our new Healthy Food for Ohio (HFFO) program, FCAP has focused on helping healthy food retailers overcome financial barriers to opening or expanding operations in underserved areas. With State seed capital and support from a wide range of public and private funders, HFFO is well under way since its launch in March. Projects are welcome to apply for funding at www.financefund.org. Click on the “Healthy Food Provider” button to access program guidelines and the pre-application. Or feel free to contact me at Oelhagmusa@financefund.org.

Every company has its own culture. At Finance Fund, we are fueled by a shared passion for helping people and communities overcome barriers to economic prosperity. We work hard to help our clients find financing solutions to address business challenges and we are very good at helping them get to “yes” when traditional lenders have said “no.”

Market on the Green, UpTown Toledo.

As we begin the summer and the second half of the year, we have a lot to celebrate including the March 2016 launch of the statewide Healthy Food for Ohio program. A wide range of healthy food projects have applied for funding to date, and we look forward to announcing project awards soon. This public-private partnership helps overcome funding gaps and barriers faced by grocers and other healthy food retailers operating in low-income areas. Through grants, loans and forgivable loans this flexible financing program aims to increase access to affordable, fresh food in underserved areas, improve the diets of Ohio residents, and spur economic development and revitalization.

Finance Fund’s latest New Markets Tax Credit (NMTC) project is extremely meaningful to us all. Our $5.5 million NMTC allocation to United Rehabilitation Services (URS) of Greater Dayton will help double the size of the current facility and significantly increase URS’ capacity to provide specialized programs for children and adults with disabilities or other special needs. The project includes construction of a 21,000 sq. ft. Children’s Wing and other facility enhancements, and will create or retain approximately 169 jobs.

URS helps adults and children work toward independence

Over the past six months, Finance Fund Capital Corporation’s (FCAP) program and fiscal teams have been very active in small business lending; closing eight loans totaling more than $4.2 million to assist with business expansion and job creation throughout the state.

Our staff recently gathered to celebrate work anniversaries and birthdays with a “Beach Party” that included food, games, prizes and lots of great fun. Many members of Finance Fund’s outstanding team have been with the company for five years or more and a few are reaching 15- and 20-year anniversary milestones. This staff longevity speaks well of our culture, depth of experience, and the tremendously satisfying nature of our work.

Thank you for your interest in Finance Fund and FCAP and for giving us the opportunity to work in underserved communities every day. Our 2015 Annual Report provides an overview of our financial position and some of our work. You may also want to view our new Corporate Video

We invite you to get in touch to discuss your project ideas, or how you can provide funding support for our flexible grant and loan programs. You can reach me at dturoff@financefund.org.